Hummer Case Analysis
1 Introduction
This study provides a market positioning assessment for the Hummer, a product of AM General.
Section 2 of this document contains an analysis of the strengths, weaknesses, opportunities, and threats (SWOT) of AM General. Section 3 provides an analysis of the alternative market segments that may be pursued for the Hummer. Section 4 provides a brief assessment of market sizes. Section 5 draws conclusions and makes recommendations for the marketing mix for the Hummer.
2 SWOT Analysis
This section reviews the strengths, weaknesses, external opportunities, and external threats (SWOT) for AM General.
Internal Strengths
?· Proven innovation in the design of special-purpose vehicles.
?· Ownership by a parent company, ameliorating cash-flow concerns and facilitating long-term capital investment.
?· Strong public perception as the provider of an important military vehicle.
?· Public perception of the Hummer as a product that evokes off-road-orientation, machismo, and high status.
?· A continuing anchor customer in the US military.
?· A small but growing consumer market.
Internal Weaknesses
?· A historical focus on the government as a customer, which may introduce cultural attitudes and procedures incompatible with other markets.
?· A high unit price for current products, most likely reflecting costly features to meet military specifications.
External Opportunities
?· Potential markets including foreign militaries, other government agencies, businesses needing special-purpose vehicles, and consumers.
?· Potential for expansion into other specialty vehicles for
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